Attorney General Stumbo signed an agreement today with Duke Energy of Kentucky, formerly known as Union Light, Heat and Power Company. In the agreement, Duke agreed to a general increase of $49 million, down by $17.6 million, or 26%, from its original request of $66.6 million.

In addition to the amount of settlement, Duke has agreed to credit customers for additional amounts including $8.8 million in emission allowances and $3.8 million in transmission costs savings. Rate payers will experience an increase of approximately $36.34 million, or 47% less than the $66.6 million originally requested by Duke.

“After extensive negotiations, I am satisfied that consumers will experience as little an increase as possible,” Attorney General Stumbo said. “While any increase is difficult for our citizens, much of this increase is associated with the acquisition of generating facilities bought to keep rates lower for customers over the long run.”

The Public Service Commission, which must approve the settlement, will hold a hearing on the matter on October 30th, 2006.